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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
ENGROSSED SENATE
BILL NO. 1486 By: Jech, David and Allen of
the Senate
and
Newton of the House
[ sales and use tax - modifying the basis upon which
gross receipts are calculated for the purposes of
sales tax and purchase price is calculated -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
amended to read as follows:
Section 1355. There are hereby specifically exempted from t he
tax levied pursuant to the provis ions of Section 1350 e t seq. of
this title:
1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
mixture of methanol an d gasoline containing at least eighty -five
percent (85%) methanol, compressed natural gas, l iquefied natural
gas, or liquefied petroleum gas on which the Motor Fuel Tax,
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Gasoline Excise Tax, Special Fuels Tax or the fee in lieu of Special
Fuels Tax levied in Section 500.1 et seq., Section 601 et seq. or
Section 701 et seq. of this title has been, or will be paid;
2. For the sale of motor vehicles or an y optional equipment or
accessories attached to motor vehicles on which the Oklahoma Motor
Vehicle Excise Tax levied in Section 2101 et seq. of this title has
been, or will be paid, all but a portio n of the levy provided under
Section 1354 of this title, e qual to one and twenty-five-hundredths
percent (1.25%) of the gross receipts of such sales. For the
purposes of this paragraph, if the sale of a m otor vehicle includes
a trade-in, gross receipts shall be calculated based only on the
difference between the value of the trade-in vehicle and the ac tual
sales price of the vehicle being purchased. Provided, the sale of
motor vehicles shall not be subject to any sales and use taxes
levied by cities, cou nties or other jurisdictions of the s tate;
3. Sale of crude petroleum or natural or casinghead gas and
other products subject to gross production tax pursuant to the
provisions of Section 1001 et seq. and Section 1101 et seq. of this
title. This exemptio n shall not apply when such products are sold
to a consumer or user for consumption or use, except w hen used for
injection into the earth for the purpose of promot ing or
facilitating the production of oil or gas. This paragraph shall not
operate to increase or repeal the gross production tax levied by the
laws of this state;
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4. Sale of aircraft on whic h the tax levied pursuant to the
provisions of Sections 6001 th rough 6007 of this title has been, or
will be paid or which are specifically exempt from such tax pursuant
to the provisions of Se ction 6003 of this tit le;
5. Sales from coin-operated devices on which the fee imposed by
Sections 1501 through 1512 of this title has been paid;
6. Leases of twelve (12) months or more of motor vehicles in
which the owners of the vehicles have paid the vehicle excise tax
levied by Section 2103 of this title;
7. Sales of charity game equipment on which a tax is levied
pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
Title 3A of the Oklahoma Statutes, or which is sold to an
organization that is:
a. a veterans’ organization exempt from taxation pursu ant
to the provisions of paragraph (4), (7), (8), (10) or
(19) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amend ed, 26
U.S.C., Section 501(c) et seq. ,
b. a group home for mentally disabled individuals exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq., or
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c. a charitable health car e organization which is exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq.;
8. Sales of cigarettes or tobacco products to:
a. a federally recognized In dian tribe or nation which
has entered into a compact with the State of Oklahoma
pursuant to the provisions of subsection C of Section
346 of this title or to a licensee of such a tribe or
nation, upon which the pay ment in lieu of taxes
required by the compact has been paid, or
b. a federally recognized Indian tribe o r nation or to a
licensee of such a tribe or nation upon which the tax
levied pursuant to the provisions of Section 349.1 or
Section 426 of this title h as been paid;
9. Leases of aircraft upon which the owners have paid the
aircraft excise tax levied by S ection 6001 et seq. of this title or
which are specifically exempt from such tax pursuant to the
provisions of Section 6003 of thi s title;
10. The sale of low-speed or medium-speed electrical vehicles
on which the Oklahoma Motor Vehicle Excise Tax levied in Section
2101 et seq. of this title has been or will be paid;
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11. Effective January 1, 20 05, sales of cigarettes on which the
tax levied in Section 3 01 et seq. of this title or tobacco produ cts
on which the tax levied in Section 401 et seq. of this tit le has
been paid; and
12. Sales of electricity at charging stations as defined by
Section 2 of this act when the electricity is so ld by a charging
station owner or operator for purposes of char ging an electric
vehicle as defined by Section 2 of this act a nd the tax imposed
pursuant to Section 4 of this act is collected and remitted to the
Oklahoma Tax Commission.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
amended to read as follows:
Section 1404. The provisions of Section 1401 et seq. of this
title shall not apply:
1. In respect to the use of any article of ta ngible personal
property brought into the State of Oklahoma by a nonresident
individual, visiting in this state, for his or her personal use or
enjoyment, while within th e state;
2. In respect to the use of tangible personal property
purchased for resale before being used;
3. In respect to the use of any article of tangible personal
property on which a tax, equal to or in excess of that levied by
Section 1401 et seq. of this title, has been paid by the person
using such tangible personal property in this state, whether such
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tax was levied under the laws of this st ate or some other state of
the United States. If any article of tangible personal property has
already been subjected to a tax, by this or any other state, in
respect to its sale or use, in an am ount less than the tax imposed
by Section 1401 et seq. of th is title, the provisions of Section
1401 et seq. of this title shall apply to it by a rate measured by
the difference only between the rate herein provided and the rate by
which the previous tax u pon the sale or use was computed. Pro vided,
that no credit shall be given for taxes paid in another state, if
that state does not grant like credit for taxes paid in Okl ahoma;
4. In respect to the use of tangible personal property now
specifically exempted from taxation under Oklahoma Sales Tax Code.
Provided, for the sale of motor vehicles or any opti onal equipment
or accessories attached to motor vehicles on which the Oklahoma
Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
2108 of this title has been, or will be paid, th e exceptions shall
apply to all but a portion of the levy provi ded under Section 1402
of this title, equal to one and twenty -five-hundredths percent
(1.25%) of the purchase price. For the purposes of this para graph,
if the sale of a motor vehicle includes a trade-in, the purchase
price shall be calculated based only on the difference between the
value of the trade-in vehicle and the actual purchase price of the
vehicle being purchased. Provided further, the sale of m otor
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vehicles shall not be subject to a ny sales and use taxes levied by
cities, counties or other juri sdictions of the state;
5. In respect to the use of any article or t angible personal
property brought into the state by an individual with intent to
become a resident of this state where such personal property is f or
such individual’s personal use or enjo yment;
6. In respect to the use of any article of tangible personal
property used or to be used by co mmercial airlines or railroads;
7. In respect to li vestock purchased outside this state an d
brought into this st ate for feeding or breeding purposes, and which
is later resold; and
8. Effective January 1, 1991, in respect to the use of rail
transportation cars to haul coal to coal -fired plants located in
this state which generate electric powe r.
SECTION 3. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS A ND BUDGET, dated
04/11/2022 - DO PASS, As Amended and Coauthored .